Cap. 235 Art. 8English text to prevail in Schedules. ARTICLES The Considering: That mutual development of international prosperity; That an standards of is desirable not international That international resources of the The "the provisions: The purposes productivity and world included finance to meet more flexible

In the Schedules to this Act, in the case of any conflict between the Maltese and the English text, the English text shall prevail. [SECTION 2]

OF AGREEMENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

Governments on whose behalf this Agreement is signed, cooperation for constructive economic purposes, healthy the world economy and balanced growth of international trade foster relationships conducive to the maintenance of peace and world acceleration of economic development which will promote higher living and economic and social progress in the less-developed countries only in the interests of those countries but also in the interests of the community as a whole; achievement of these objectives would be facilitated by an increase in the flow of capital, public and private, to assist in the development of the less-developed countries, do hereby agree as follows: Introductory Article INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called Association") is established and shall operate in accordance with the following

Article I

Purposes of the Association are to promote economic development, increase thus raise standards of living in the less-developed areas of the within the Association’s membership, in particular by providing their important developmental requirements on terms which are and bear less heavily on the balance of payments than those of loans, thereby furthering the developmental objectives of the Bank for Reconstruction and Development (hereinafter called "the supplementing its activities. Association shall be guided in all its decisions by the provisions of this

Article II

Membership; Initial Subscriptions Membership original members of the Association shall be those members of the Bank Schedule A hereto which, on or before the date specified in Article XI, accept membership in the Association. Membership shall be open to other members of the Bank at such times and in amount assigned to it. Such subscriptions are herein referred susbscriptions.

(b) The initial subscription assigned to each original member amount set forth opposite its name in Schedule A, expressed in States dollars of the weight and fineness in effect on January 1,1960.

(c) Ten percent of the initial subscription of each original payable in gold or freely convertible currency as follows: fifty percent days after the date on which the Association shall begin operations Article XI, Section 4, or on the date on which the original member member, whichever shall be later; twelve and one-half percent one beginning of operations of the Association; and twelve and one-half year thereafter at annual intervals until the ten percent portion subscription shall have been paid in full.

(d) The remaining ninety percent of the initial subscription member shall be payable in gold or freely convertible currency members listed in Part I of Schedule A, and in the currency of member in the case of members listed in Part II of Schedule A. This portion of initial subscriptions of original members shall be payable annual instalments as follows: the first such instalment within thirty date on which the Association shall begin operations pursuant to Article 4, or on the date on which the original member becomes a member, be later; the second instalment one year after the beginning of operations Association, and succeeding instalments each year thereafter at annual the ninety percent portion of the initial subscription shall have been

(e) The Association shall accept from any member, in place of member’s currency paid in or payable by the member under the preceding

(d) or under Section 2 of Article IV and not needed by the Association operations, notes or similar obligations issued by the government the depository designated by such member, which shall be non-negotiable, interest-bearing and payable at their par value on demand to the Association in the designated depository.

(f) For the purposes of this Agreement the Association shall convertible currency":

(i) currency of a member which the Association determines, consultation with the International Monetary Fund, is adequately convertible currencies of other members for the purposes of the Association’s operations;

(ii) currency of a member which such member agrees, on to the Association, to exchange for the currencies of other members of the Association’s operations.

(g) Except as the Association may otherwise agree, each member of Schedule A shall maintain, in respect of its currency paid in convertible currency pursuant to subsection (d) of this Section, convertibility as existed at the time of payment.

(h) The conditions on which the initial subscriptions of members original members may be made, and the amounts and the terms of shall be determined by the Association pursuant to Section 1 (b) of Article III Additions to Resources

Additional Subscriptions Association shall at such time as it deems appropriate in the light of the completion of payments on initial subscriptions of original members, of approximately five years thereafter, review the adequacy of its if it deems desirable, shall authorize a general increase in Notwithstanding the foregoing, general or individual increases in may be authorized at any time, provided that an individual increase considered only at the request of the member involved. Subscriptions Section are herein referred to as additional subscriptions. to the provisions of paragraph (c) below, when additional authorized, the amounts authorized for subscription and the terms relating thereto shall be as determined by the Association. any additional subscription is authorized, each member shall be given subscribe, under such conditions as shall be reasonably determined Association, an amount which will enable it to maintain its relative voting member shall be obligated to subscribe. decisions under this Section shall be made by a two-thirds majority of power. Supplementary Resources Provided by a Member in the Currency of

Association may enter into arrangements, on such terms and conditions the provisions of this Agreement as may be agreed upon, to receive member, in addition to the amounts payable by such member on account of additional subscription, supplementary resources in the currency of member, provided that the Association shall not enter into any such unless the Association is satisfied that the member whose currency is to the use of such currency as supplementary resources and to the conditions governing such use. The arrangements under which any such received may include provisions regarding the disposition of earnings and regarding the disposition of the resources in the event that the providing them ceases to be a member or the Association permanently operations. Association shall deliver to the contributing member a Special Certificate setting forth the amount and currency of the resources so the terms and conditions of the arrangement relating to such Special Development Certificate shall not carry any voting rights and transferable only to the Association. in this Section shall preclude the Association from accepting a member in its own currency on such terms as may be agreed upon.

(a) Currency of any member listed in Part II of Schedule A, freely convertible, received by the Association pursuant to Article in payment of the ninety percent portion payable thereunder in the member, and currency of such member derived therefrom as principal, other charges, may be used by the Association for administrative expenses by the Association in the territories of such member and, insofar as sound monetary policies, in payment for goods and services territories of such member and required for projects financed by the located in such territories; and in addition when and to the extent economic and financial situation of the member concerned as agreement between the member and the Association, such currency convertible or otherwise usable for projects financed by the Association outside the territories of the member.

(b) The usability of currencies received by the Association subscriptions other than initial subscriptions of original members, derived therefrom as principal, interest or other charges, shall be terms and conditions on which such subscriptions are authorized.

(c) The usability of currencies received by the Association resources other than subscriptions, and currencies derived therefrom interest or other charges, shall be governed by the terms of the pursuant to which such currencies are received.

(d) All other currencies received by the Association may be exchanged by the Association and shall not be subject to any restriction member whose currency is used or exchanged; provided that the foregoing preclude the Association from entering into any arrangements with whose territories any project financed by the Association is located use by the Association of such member’s currency received as principal, other charges in connection with such financing.

(e) The Association shall take appropriate steps to ensure that, intervals of time, the portions of the subscriptions paid under Article by members listed in Part I of Schedule A shall be used by the Association approximately pro rata basis, provided, however, that such portions subscriptions as are paid in gold or in a currency other than that of member may be used more rapidly.

SECTION 2. Maintenance of Value of Currency Holdings

(a) Whenever the par value of a member’s currency is reduced exchange value of a member’s currency has, in the opinion of depreciated to a significant extent within that member’s territories, pay to the Association within a reasonable time an additional amount currency sufficient to maintain the value, as of the time of subscription, amount of the currency of such member paid in to the Association under Article II, Section 2(d), and currency furnished under the present paragraph, whether or not such currency is held in the form pursuant to Article II, Section 2(e), provided, however, that the foregoing only so long as and to the extent that such currency shall not have disbursed or exchanged for the currency of another member. to the increase in the value of the amount of such currency to which paragraph (a) of this Section are applicable.

provisions of the preceding paragraphs may be waived by the a uniform proportionate change in the par value of the currencies members is made by the International Monetary Fund. furnished under the provisions of paragraph (a) of this Section to value of any currency shall be convertible and usable to the same extent

Article V

Operations of Resources and Conditions of Financing

Association shall provide financing to further development in the less-of the world included within the Association’s membership.

Financing provided by the Association shall be for purposes which in the Association are of high developmental priority in the light of the or areas concerned and, except in special circumstances, shall be projects. Association shall not provide financing if in its opinion such financing private sources on terms which are reasonable for the recipient or provided by a loan of the type made by the Bank.

Association shall not provide financing except upon the of a competent committee, made after a careful study of the merits Each such committee shall be appointed by the Association and shall nominee of the Governor or Governors representing the member or whose territories the project under consideration is located and one or of the technical staff of the Association. The requirement that the include the nominee of a Governor or Governors shall not apply in the provided to a public international or regional organization.

Association shall not provide financing for any project if the member in the project is located objects to such financing, except that it shall for the Association to assure itself that individual members do not case of financing provided to a public international or regional

Association shall impose no conditions that the proceeds of its be spent in the territories of any particular member or members. The not preclude the Association from complying with any restrictions on imposed in accordance with the provisions of these Articles, restrictions attached to supplementary resources pursuant to agreement Association and the contributor. Association shall make arrangements to ensure that the proceeds of any used only for the purposes for which the financing was provided, with considerations of economy, efficiency and competitive international without regard to political or other non-economic influences or SECTION 2. Form and Terms of Financing

(a) Financing by the Association shall take the form of loans. may, however, provide other financing, either

(i) out of funds subscribed pursuant to Article III, Section derived therefrom as principal, interest or other charges, if the authorization subscriptions expressly provides for such financing; or

(ii) in special circumstances, out of supplementary resources the Association, and funds derived therefrom as principal, interest if the arrangements under which such resources are furnished expressly such financing.

(b) Subject to the foregoing paragraph, the Association may provide in such forms and on such terms as it may deem appropriate, having economic position and prospects of the area or areas concerned and requirements of the project.

(c) The Association may provide financing to a member, the territory included within the Association’s membership, a political any of the foregoing, a public or private entity in the territories members, or to a public international or regional organization.

(d) In the case of a loan to an entity other than a member, the in its discretion, require a suitable governmental or other guarantee

(e) The Association, in special cases, may make foreign exchange local expenditures.

SECTION 3. Modifications of Terms of Financing The Association may, when and to the extent it deems appropriate all relevant circumstances, including the financial and economic prospects of the member concerned, and on such conditions as it agree to a relaxation or other modification of the terms on which any shall have been provided. SECTION 4. Cooperation with Other International Organizations Providing Development Assistance The Association shall cooperate with those public international members which provide financial and technical assistance to the areas of the world. SECTION 5. Miscellaneous Operations

In addition to the operations specified elsewhere in this Association may:

(i) borrow funds with the approval of the member in whose loan is denominated;

(ii) guarantee securities in which it has invested in order sale;

(iii) buy and sell securities it has issued or guaranteed or provide technical assistance and advisory services at the request of a exercise such other powers incidental to its operations as shall be desirable in furtherance of its purposes.

Political Activity Prohibited Association and its officers shall not interfere in the political affairs of any shall they be influenced in their decisions by the political character of members concerned. Only economic considerations shall be relevant decisions, and these considerations shall be weighed impartially in order to purposes stated in this Agreement.

Article VI

Organization and Management Structure of the Association

Association shall have a Board of Governors, Executive Directors, a President officers and staff to perform such duties as the Association may

Board of Governors powers of the Association shall be vested in the Board of Governors. Governor and Alternate Governor of the Bank appointed by a member which is also a member of the Association shall ex officio be a Governor Governor, respectively, of the Association. No Alternate Governor in the absence of his principal. The Chairman of the Board of Bank shall ex officio be Chairman of the Board of Governors of the except that if the Chairman of the Board of Governors of the Bank shall which is not a member of the Association, then the Board of select one of the Governors as Chairman of the Board of Governors. or Alternate Governor shall cease to hold office if the member by appointed shall cease to be a member of the Association.

Board of Governors may delegate to the Executive Directors authority of its powers, except the power to:

admit new members and determine the conditions of their admission; authorize additional subscriptions and determine the terms and relating thereto; suspend a member; decide appeals from interpretations of this Agreement given by the Directors; make arrangements pursuant to Section 7 of this Article to cooperate international organizations (other than informal arrangements of a administrative character); decide to suspend permanently the operations of the Association and to

(viii) approve proposed amendments to this Agreement.

(d) The Board of Governors shall hold an annual meeting meetings as may be provided for by the Board of Governors Executive Directors.

(e) The annual meeting of the Board of Governors shall be held with the annual meeting of the Board of Governors of the Bank.

(f) A quorum for any meeting of the Board of Governors shall the Governors, exercising not less than two-thirds of the total voting

(g) The Association may by regulation establish a procedure Executive Directors may obtain a vote of the Governors on a specific without calling a meeting of the Board of Governors.

(h) The Board of Governors, and the Executive Directors authorized, may adopt such rules and regulations as may be necessary to conduct the business of the Association.

(i) Governors and Alternate Governors shall serve as compensation from the Association.

SECTION 3. Voting

(a) Each original member shall, in respect of its initial subscription, votes plus one additional vote for each $5,000 of its initial Subscriptions other than initial subscriptions of original members voting rights as the Board of Governors shall determine pursuant to Article II, Section 1 (b) or Article III, Section 1 (b) and (c), as Additions to resources other than subscriptions under Article II, Section additional subscriptions under Article III, Section 1, shall not carry

(b) Except as otherwise specifically provided, all matters before shall be decided by a majority of the votes cast.

SECTION 4. Executive Directors

(a) The Executive Directors shall be responsible for the conduct operations of the Association, and for this purpose shall exercise given to them by this Agreement or delegated to them by the Board

(b) The Executive Directors of the Association shall be composed each Executive Director of the Bank who shall have been (i) appointed of the Bank which is also a member of the Association, or (ii) elected in which the votes of at least one member of the Bank which is also Association shall have counted toward his election. The Alternate Executive Director of the Bank shall ex officio be an Alternate Association. Any Director shall cease to hold office if the member appointed, or if all the members whose votes counted toward his election, to be members of the Association.

(c) Each Director who is an appointed Executive Director of entitled to cast the number of votes which the member by which he entitled to cast in the Association. Each Director who is an elected Director of the Bank shall be entitled to cast the number of votes which or members of the Association whose votes counted toward his election in meetings but shall not vote.

quorum for any meeting of the Executive Directors shall be a majority of exercising not less than one-half of the total voting power.

Executive Directors shall meet as often as the business of the require.

Board of Governors shall adopt regulations under which a member of not entitled to appoint an Executive Director of the Bank may send a attend any meeting of the Executive Directors of the Association made by, or a matter particularly affecting, that member is under

President and Staff President of the Bank shall be ex officio President of the Association. shall be Chairman of the Executive Directors of the Association but vote except a deciding vote in case of an equal division. He may meetings of the Board of Governors but shall not vote at such

President shall be chief of the operating staff of the Association. Under the Executive Directors he shall conduct the ordinary business of the under their general control shall be responsible for the organization, and dismissal of the officers and staff. To the extent practicable, of the Bank shall be appointed to serve concurrently as officers and Association. President, officers and staff of the Association, in the discharge of their their duty entirely to the Association and to no other authority. Each Association shall respect the international character of this duty and from all attempts to influence any of them in the discharge of their appointing officers and staff the President shall, subject to the paramount securing the highest standards of efficiency and of technical due regard to the importance of recruiting personnel on as wide a basis as possible.

Relationship to the Bank Association shall be an entity separate and distinct from the Bank and Association shall be kept separate and apart from those of the Bank. shall not borrow from or lend to the Bank except that this shall not Association from investing funds not needed in its financing operations the Bank. Association may make arrangements with the Bank regarding facilities, services and arrangements for reimbursement of administrative the first instance by either organization on behalf of the other.

in this Agreement shall make the Association liable for the acts or the Bank, or the Bank liable for the acts or obligations of the having specialized responsibilities in related fields. SECTION 8. Location of Offices

The principal office of the Association shall be the principal office The Association may establish other offices in the territories of any SECTION 9. Depositories

Each member shall designate its central bank as a depository Association may keep holdings of such member’s currency or other Association, or, if it has no central bank, it shall designate for such other institution as may be acceptable to the Association. In the different designation, the depository designated for the Bank shall for the Association. SECTION 10. Channel of Communication

Each member shall designate an appropriate authority with which may communicate in connection with any matter arising under this the absence of any different designation, the channel of communication for the Bank shall be the channel for the Association. SECTION 11. Publication of Reports and Provision of Information

(a) The Association shall publish an annual report containing statement of its accounts and shall circulate to members at appropriate summary statement of its financial position and of the results of its

(b) The Association may publish such other reports as it deems carry out its purposes.

(c) Copies of all reports, statements and publications made under shall be distributed to members.

SECTION 12. Disposition of Net Income The Board of Governors shall determine from time to time the disposition Association’s net income, having due regard to provision for contingencies.

Article VII

Withdrawal; Suspension of Membership; Suspension of Operations SECTION 1. Withdrawal by Members

Any member may withdraw from membership in the Association transmitting a notice in writing to the Association at its principal office. shall become effective upon the date such notice is received. SECTION 2. Suspension of Membership

(a) If a member fails to fulfil any of its obligations to the Association may suspend its membership by decision of a majority exercising a majority of the total voting power. The member so automatically cease to be a member one year from the date of its suspension decision is taken by the same majority to restore the member to good Suspension or Cessation of Membership in the Bank which is suspended from membership in, or ceases to be a member shall automatically be suspended from membership in, or cease to be a Association, as the case may be. Rights and Duties of Governments Ceasing to be Members government ceases to be a member, it shall have no rights under this except as provided in this Section and in Article X (c) but it shall, except Section otherwise provided, remain liable for all financial obligations it to the Association, whether as a member, borrower, guarantor or a government ceases to be a member, the Association and the proceed to a settlement of accounts. As part of such settlement of Association and the government may agree on the amounts to be paid government on account of its subscription and on the time and currencies of term "subscription" when used in relation to any member government purposes of this Article be deemed to include both the initial any additional subscription of such member government. such agreement is reached within six months from the date when the ceased to be a member, or such other time as may be agreed upon by the the government, the following provisions shall apply:

government shall be relieved of any further liability to the account of its subscription, except that the government shall pay to forthwith amounts due and unpaid on the date when the government member and which in the opinion of the Association are needed by it commitments as of that date under its financing operations.

Association shall return to the government funds paid in by the account of its subscription or derived therefrom as principal held by the Association on the date when the government ceased to except to the extent that in the opinion of the Association such funds by it to meet its commitments as of that date under its financing

Association shall pay over to the government a pro rata share of all repayments received by the Association after the date on which the ceases to be a member on loans contracted prior thereto, except those supplementary resources provided to the Association under specifying special liquidation rights. Such share shall be such total principal amount of such loans as the total amount paid by the account of its subscription and not returned to it pursuant to clause bear to the total amount paid by all members on account of their which shall have been used or in the opinion of the Association will be meet its commitments under its financing operations as of the date on government ceases to be a member. Such payment by the Association shall instalments when and as such principal repayments are received by the not more frequently than annually. Such instalments shall be paid in received by the Association except that the Association may in its payment in the currency of the government concerned. amount may, at the option of the Association, be applied against any it matures.

(v) In no event shall the government receive under this amount exceeding, in the aggregate, the lesser of the two following: paid by the government on account of its subscription, or (b) such net assets of the Association, as shown on the books of the Association on which the government ceased to be a member, as the amount of shall bear to the aggregate amount of the subscriptions of all members.

(vi) All calculations required hereunder shall be made on such be reasonably determined by the Association.

(d) In no event shall any amount due to a government under this until six months after the date upon which the government ceases to within six months of the date upon which any government ceases to Association suspends operations under Section 5 of this Article, government shall be determined by the provisions of such Section government shall be considered a member of the Association for Section 5, except that it shall have no voting rights.

SECTION 5. Suspension of Operations and Settlement of Obligations

(a) The Association may permanently suspend its operations majority of the Governors exercising a majority of the total voting suspension of operations the Association shall forthwith cease all those incident to the orderly realization, conservation and preservation and settlement of its obligations. Until final settlement of such distribution of such assets, the Association shall remain in existence rights and obligations of the Association and its members under this continue unimpaired, except that no member shall be suspended or and that no distribution shall be made to members except as in this

(b) No distribution shall be made to members on account of their until all liabilities to creditors shall have been discharged or provided the Board of Governors, by vote of a majority of the Governors exercising of the total voting power, shall have decided to make such distribution.

(c) Subject to the foregoing, and to any special arrangements for of supplementary resources agreed upon in connection with the provision resources to the Association, the Association shall distribute its assets pro rata in proportion to amounts paid in by them on account of their Any distribution pursuant to the foregoing provision of this paragraph subject, in the case of any member, to prior settlement of all outstanding the Association against such member. Such distribution shall be made in such currencies, and in cash or other assets as the Association shall equitable. Distribution to the several members need not be uniform type of assets distributed or of the currencies in which they are expressed.

(d) Any member receiving assets distributed by the Association Section or Section 4 shall enjoy the same rights with respect to such Association enjoyed prior to their distribution. Association to fulfil the functions with which it is entrusted, the immunities and privileges provided in this Article shall be accorded to the the territories of each member. Status of the Association

Association shall possess full juridical personality and, in particular, the contract; acquire and dispose of immovable and movable property; institute legal proceedings.

Position of the Association with Regard to Judicial Process be brought against the Association only in a court of competent territories of a member in which the Association has an office, has agent for the purpose of accepting service or notice of process, or has guaranteed securities. No actions shall, however, be brought by members for or deriving claims from members. The property and assets of shall, wheresoever located and by whomsoever held, be immune of seizure, attachment or execution before the delivery of final against the Association.

Immunity of Assets from Seizure assets of the Association, wherever located and by whomsoever held, from search, requisition, confiscation, expropriation or any other by executive or legislative action.

Immunity of Archives of the Association shall be inviolable.

Freedom of Assets from Restrictions necessary to carry out the operations provided for in this Agreement the provisions of this Agreement, all property and assets of the be free from restrictions, regulations, controls and moratoria of

Privilege for Communications communications of the Association shall be accorded by each member treatment that it accords to the official communications of other members.

Immunities and Privileges of Officers and Employees Governors, Executive Directors, Alternates, officers and employees of the be immune from legal process with respect to acts performed by official capacity except when the Association waives this immunity; being local nationals, shall be accorded the same immunities from restrictions, alien registration requirements and national service the same facilities as regards exchange restrictions as are accorded rank of other members.

SECTION 9. Immunities from Taxation

(a) The Association, its assets, property, income and its transactions authorized by this Agreement, shall be immune from from all customs duties. The Association shall also be immune from collection or payment of any tax or duty.

(b) No tax shall be levied on or in respect of salaries and emoluments the Association to Executive Directors, Alternates, officials or employees Association who are not local citizens, local subjects, or other local

(c) No taxation of any kind shall be levied on any obligation by the Association (including any dividend or interest thereon) by whomsoever

(i) which discriminates against such obligation or security it is issued by the Association; or

(ii) if the sole jurisdictional basis for such taxation is the in which it is issued, made payable or paid, or the location of any business maintained by the Association.

(d) No taxation of any kind shall be levied on any obligation guaranteed by the Association (including any dividend or interest whomsoever held

(i) which discriminates against such obligation or security it is guaranteed by the Association; or

(ii) if the sole jurisdictional basis for such taxation is the office or place of business maintained by the Association.

SECTION 10. Application of Article Each member shall take such action as is necessary in its own purpose of making effective in terms of its own law the principles Article and shall inform the Association of the detailed action which

Article IX

Amendments

(a) Any proposal to introduce modifications in this Agreement, emanating from a member, a Governor or the Executive Directors, communicated to the Chairman of the Board of Governors who proposal before the Board. If the proposed amendment is approved Association shall, by circular letter or telegram, ask all members whether the proposed amendment. When three-fifths of the members, having the total voting power, have accepted the proposed amendments, shall certify the fact by formal communication addressed to all members.

(b) Notwithstanding (a) above, acceptance by all members is case of any amendment modifying

(i) the right to withdraw from the Association provided Amendments shall enter into force for all members three months after the formal communication unless a shorter period is specified in the circular telegram.

Article X Interpretation and Arbitration question of interpretation of the provisions of this Agreement arising member and the Association or between any members of the be submitted to the Executive Directors for their decision. If the particularly affects any member of the Association not entitled to appoint Director of the Bank, it shall be entitled to representation in accordance Section 4 (g). case where the Executive Directors have given a decision under (a) member may require that the question be referred to the Board of whose decision shall be final. Pending the result of the reference to the Governors, the Association may, so far as it deems necessary, act on the decision of the Executive Directors. Whenever a disagreement arises between the Association and a country ceased to be a member, or between the Association and any member permanent suspension of the Association, such disagreement shall be arbitration by a tribunal of three arbitrators, one appointed by the another by the country involved and an umpire who, unless the parties shall be appointed by the President of the International Court of other authority as may have been prescribed by regulation adopted by The umpire shall have full power to settle all questions of procedure the parties are in disagreement with respect thereto.

Article XI

Final Provisions Entry into Force

Agreement shall enter into force when it has been signed on behalf of whose subscriptions comprise not less than sixty-five percent of the subscription set forth in Schedule A and when the instruments referred to in this Article have been deposited on their behalf, but in no event shall enter into force before September 15, 1960.

Signature government on whose behalf this Agreement is signed shall deposit an instrument setting forth that it has accepted this Agreement in its law and has taken all steps necessary to enable it to carry out all under this Agreement.

government shall become a member of the Association as from the deposit on its behalf of the instrument referred to in paragraph (a) above government shall become a member before this Agreement enters into this Agreement shall not have entered into force by that date the Executive of the Bank may extend the period during which this Agreement shall for signature by not more than six months.

(d) After this Agreement shall have entered into force, it shall signature on behalf of the government of any state whose membership been approved pursuant to Article II, Section 1 (b).

SECTION 3. Territorial Application By its signature of this Agreement, each government accepts it behalf and in respect of all territories for whose international government is responsible except those which are excluded by such written notice to the Association.

SECTION 4. Inauguration of the Association

(a) As soon as this Agreement enters into force under Section the President shall call a meeting of the Executive Directors.

(b) The Association shall begin operations on the date when held.

(c) Pending the first meeting of the Board of Governors, Directors may exercise all the powers of the Board of Governors reserved to the Board of Governors under this Agreement. SECTION 5. Registration

The Bank is authorized to register this Agreement with the Secretariat United Nations in accordance with Article 102 of the Charter of the and the Regulations thereunder adopted by the General Assembly. DONE at Washington, in a single copy which shall remain archives of the International Bank for Reconstruction and Development, indicated by its signature below its agreement to act as depository of to register this Agreement with the Secretariat of the United Nations governments whose names are set forth in Schedule A of the Agreement shall have entered into force under Article XI, Section 1 Italy 18.16 Africa 10.09 Japan 33.59 United Luxembourg 1.01 Kingdom 131.14 Netherlands 27.74 United States 320.29 Norway 6.72 763.07 Sweden 10.09